Buying your first Crypto: 10 things you should know

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Cryptocurrency has risen to a popularity higher than ever before, and it doesn’t seem to be waning any time soon. Sure enough, it’s still the major investors and people in the know who are making the really big bucks, but we’re also seeing a rise in the smaller investors, people who just want to make some money for their retirement plans.

1. Safety
Cryptocurrency, and especially Bitcoin, is making its way into the mainstream through payment options online and in the physical space. Cryptocurrency is protected through stringent encryption and is extremely hard to hack. Consequently, cryptocurrency has become particularly popular with people who play at the top live casinos in Canada, as it is known as both a safe and easy payment option online. It’s easy to find the best live casino Canada if you want to try out using cryptocurrency for yourself.

2. Invest carefully
Cryptocurrency, like any other investment has its risks and you should never invest more than you can afford to lose. There are no guarantees, even for the most advanced investors.

3. Research
It always pays to invest at the right time, but how do you know what the right time is? An upward sloping value curve might look tempting but understanding what makes value fluctuate is essential not to run into a brick wall when that curve suddenly drops. Learn about which factors influence the value of cryptocurrency, look at the trends in the market and then decide which cryptocurrencies to invest in, and when to do it.

4. Verify
The internet can be a dangerous place, and not everyone has the best intentions. Do not part with your money or personal information before verifying that your opportunity is 100 % legit, and that you don’t risk being scammed.

5. Taxes
Cryptocurrency is no longer a free-for-all in terms of taxes, and you need to be aware of the fiscal consequences that come along with your investment. Do not try to hide your winnings from the tax system – this will only result is even higher fines.

6. Only invest when your ready
Cryptocurrency is getting a tonne of attention and it can be difficult not to be caught up in the excitement of it all. However, you shouldn’t be investing your money just for the sake of not missing out on an opportunity. Invest because you’re sure about your investment, and ready to take the potential losses that come with it.

7. Don’t borrow to invest
Some exchanges offer opportunities to borrow money in order to make an investment. This is all good if your investment pays off, but if the value diminishes you will be in serious debt. This is not a strategic way to invest your money.

8. Understand units
There are thousands of different cryptocurrencies and they all have different values. This doesn’t mean that a higher valued coin is necessarily a better investment than a lower value coin. Look into trends and market changes and don’t judge a coin solely on its value.

9. Keep your valuables safe
This is true in most walks of life, and even more so with electronic valuables. Do not entrust the keys to your cryptocurrency to any third party – including the exchanges you use for buying and selling your currency. If you don’t feel comfortable storing your own keys, look into multi-signature wallets, where you have more security steps before accessing your data.

10. Smart investments
Don’t get too hung up on the value of your cryptocurrency. Instead invest small amounts at a regular interval, spread your investments and let the cryptocurrency do its work.